Thailand Tightens Crypto Advertising Regulations
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Thailand’s Securities and Exchange Commission (SEC) has tightened regulations on cryptocurrency advertising to protect individual investors after a $2 trillion selloff. Before this, Singapore did the same, as some advertisements contained no warnings about crypto risks. In an email Thursday, the SEC stated that warnings about the risks of investing in cryptocurrencies must be included in advertisements for virtual tokens. As a result, the government had already sent a telegram.
The Thai Crypto Advertising Laws
Thailand enacted regulations to promote cryptocurrencies within its borders. The Thailand Securities and Exchange Commission stated, “Operators must provide the SEC with specifics of advertisements and spending, including the use of influencers and bloggers, conditions, and time period.”
The regulators also stated that companies have only 30 days to comply with the new regulations. Thailand’s SEC established the following restrictions to limit crypto advertising:
- Risk warnings must be mentioned and easily noticed and understood.
- Advertisements must not contain inaccurate, exaggerated, or misleading information.
- Crypto advertisements must present balanced viewpoints, citing both good and negative features. Crypto companies must limit their advertising to official channels such as their websites.
Reasons for Crypto Advertisement Regulation
It should be noted that several crypto companies in Thailand have promoted the crypto network through digital media and billboard commercials, which are also visible in Bangkok, the country’s capital. Thus, the new advertising regulations came after Zipmex, a cryptocurrency exchange with a local license in Thailand and its regional parent, suspended some withdrawals for a month.
Meanwhile, the new decision was made in response to advertisements that failed to mention the risks associated with cryptocurrencies and only showed positive things to mislead investors.
Thailand is Still Being Scrutinized by Regulators
Thai authorities have banned cryptocurrencies as a form of payment, but the Securities and Exchange Commission (SEC) has been conducting ongoing investigations into cryptocurrency firms in the country.
In recent days, regulators have issued fines on cryptocurrency companies, even as many of these businesses continue to feel the effects of the alarming global decline in the value of digital currencies.
Securities and Exchange Commission (SEC) Risk Warning
According to Thailand’s Securities and Exchange Commission (SEC), risk warnings in advertisements must be clear, visible, and understandable. Furthermore, advertisements may not contain inaccurate, exaggerated, or deceptive material. They also stated that cryptocurrency advertisements must present a balanced viewpoint by emphasizing positive and negative aspects.
Finally, crypto companies should only advertise through legitimate channels, such as their websites.
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